Shares of the Cairo-based company climbed 2.9 percent to 71
piasters at the close in the capital, the highest level since
July 16. That brings its two-day gain since a dividend
announcement to 13 percent. The benchmark EGX 30 Index lost 2.3
percent today.

The company also known as OTMT, which controls assets in
Egypt, Lebanon and North Korea, recommended yesterday a 1.35
billion dividend distribution for 2012. That’s a 26-piaster per
share bonus, according to data compiled by Bloomberg ,
representing 41 percent of the closing share price before the
announcement. OTMT was established in 2011 to split the assets
of Sawiris’ Orascom Telecom Holding SAE and facilitate its
merger with Russia’s VimpelCom Ltd.

“The move is positive as it signals OTMT’s readiness to
give cash back to shareholders in the absence of a good M&A
opportunity,” Karim Khadr and Sarah Shabayek, analysts at
Cairo-based CI Capital, who have an overweight recommendation on
the stock, wrote in a report today. “This should increase
shareholder trust in management.”

The company, which owns 75 percent of North Korea’s
monopoly mobile phone service, said last week the country’s
regime issued new policies that allow uncensored mobile-phone
internet access for foreigners. It paid a 1.05 dividend per
share in July, according to data compiled by Bloomberg.

The stock is a recommended buy by five analysts on
Bloomberg and a hold by two. “Downside risks” include a
deterioration in the North Korean operating environment and the
sustainability of the losses in the company’s media and
technology business, CI Capital said.